What are Forex spreads and why traders prefer them fixed!

When trading the forex markets, the trader needs to do their homework on which brokers are the best for their trading style.  There are numerous factors which the trader needs to consider prior to working with a forex broker.  One of the most important are the fees which the broker charges for the trades placed by the trader.  When trading the markets traders are subjected to forex spreads which are in essence the fees charged by the brokers.

forex spreadsThere are two forex spreads fee structures which brokers offer.  The first fee structure is fixed forex spreads and the second is variable spreads.  When we discuss fixed forex spreads it’s exactly what one thinks of when determining pricing.  When a trader utilizes a broker and the fees are fixed what this means is that the fee structure or spreads for their trades does not widen when trading.  For example, if the broker’s fees are fixed and there is  (for example) devastating news of a national disaster in the United States the forex spreads will not forex spreadswiden.   It is important to note that typically fixed spreads are wider then variable spreads and the difference is that variable spreads have a tendency to be lower when market volatility is low.

This content is restricted to site members. If you are an existing user, please log in. New users may register below for FREE.

Existing Users Log In
   
New User Registration
*Required field
easyMarkets
With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.
easyMarkets on FacebookeasyMarkets on GoogleeasyMarkets on TwittereasyMarkets on Youtube
easyMarkets

easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

Translate »